Financial Performance - As of March 31, 2025, Federated Hermes reported a net income attributable to shareholders of $101.1 million, an increase of 34.7% compared to $75.0 million for the same period in 2024[74]. - The earnings per share for the three months ended March 31, 2025, was $1.25, up from $0.89 in the same period of 2024, reflecting a 40.4% increase[74]. - Federated Hermes reported total revenue of $423.54 million for the period ending March 31, 2025, representing a 6.3% increase from $396.37 million in the same period of 2024[86]. - Domestic revenue increased to $365.80 million in Q1 2025, up 9.0% from $335.43 million in Q1 2024, while foreign revenue decreased to $57.74 million from $60.94 million[86]. - Net income increased by $26.1 million for the three-month period ended March 31, 2025, compared to the same period in 2024[169]. - Revenue increased by $27.2 million for the three-month period ended March 31, 2025, primarily due to an increase in money market revenue of $21.3 million[163]. Shareholder Returns - Federated Hermes declared a dividend of $0.34 per share to shareholders, payable on May 15, 2025, to those on record as of May 8, 2025[91]. - The board declared a dividend of $0.34 per share to be paid on May 15, 2025[181]. - Total shares repurchased in Q1 2025 amounted to 3,057,542 shares at an average price of $39.29 per share[199]. - The company reaffirmed its commitment to returning capital to shareholders, with a planned dividend increase of 5% in Q2 2025[209]. Asset Management - As of March 31, 2025, Federated Hermes managed assets totaled $839.8 billion, indicating strong asset management capabilities[94]. - Total managed assets increased by 8% to $839,773 million as of March 31, 2025, compared to $778,686 million in 2024[146]. - Average managed assets rose by 9% to $843,204 million for the three months ended March 31, 2025, from $776,502 million in 2024[147]. - Fixed-income total assets grew to $99,486 million, reflecting a 3% increase from $96,325 million in 2024[150]. - Equity funds saw net sales of $1,072 million, a significant improvement compared to net redemptions of $1,650 million in the previous year[148]. - Money market assets increased by 10% to $637,122 million, up from $578,811 million in 2024[146]. - Total fund assets rose by 9% to $569,201 million, compared to $520,245 million in 2024[146]. - Separate account assets increased by 5% to $270,572 million, up from $258,441 million in 2024[146]. - Fixed-income separate accounts reported ending assets of $53,686 million, a 4% increase from $51,844 million in 2024[150]. - The company reported a market gain of $1,585 million in fixed-income assets, contributing to the overall asset growth[150]. Regulatory Environment - The company faces a complex regulatory environment, with ongoing evaluations of the impact of new regulations under the current U.S. administration[98][102]. - The SEC announced a six-month extension for compliance dates of the Names Rule amendments, with larger fund groups now required to comply by June 11, 2026, and smaller fund groups by December 11, 2026[119]. - The SEC extended the effective and compliance dates for Form N-PORT amendments by at least two years, with new deadlines set for November 17, 2027, for larger fund groups and May 18, 2028, for smaller fund groups[123]. - The SEC's new Compliance and Disclosure Interpretation (C&DI) emphasizes that shareholder engagement may now be viewed as an attempt to influence control, potentially affecting eligibility for reporting on Schedule 13G[112]. - The SEC Staff Legal Bulletin No. 14M reinstated earlier guidance allowing companies to exclude shareholder proposals on economic relevance and ordinary business grounds, particularly for social policy issues[113]. - The SEC announced amendments to eliminate the delegation of authority to its Enforcement Director, potentially lengthening the investigation process for violative conduct[114]. - The new DOL fiduciary rule allows plan fiduciaries to consider governance, environmental, and social factors in investment decisions, but remains subject to potential challenges[116]. - The SEC Climate-Related Disclosure Rule, requiring large companies to disclose greenhouse gas emissions and financial impacts of severe weather, is currently under legal challenge and its future is uncertain[116]. - The Presidential administration has ordered foreign companies with U.S. government contracts to comply with the DEI executive order, impacting international business operations[111]. - The SEC's updated guidance on the Names Rule requires funds to adopt an 80% Policy for specific investment types, affecting compliance strategies for many funds[118]. - The U.S. House Judiciary Committee is investigating Institutional Shareholder Services (ISS) and Glass Lewis for alleged antitrust violations in the proxy advisory industry, with records requested dating back to 2021[124]. - On December 20, 2023, subpoenas were issued to ISS and Glass Lewis as part of a probe into governance, environmental, and social-related violations of U.S. antitrust laws[124]. - The House Judiciary Committee's interim report on December 13, 2024, detailed alleged collusion among major financial institutions and climate activists to pressure U.S. companies into committing to "net zero" climate goals[124]. - The European Commission published the Omnibus Package on February 26, 2025, aimed at simplifying EU sustainability laws and reducing the number of entities under the Corporate Sustainability Reporting Directive (CSRD)[129]. - The FCA in the U.K. announced a delay in the publication of a policy statement on extending sustainability disclosure requirements to asset managers providing individual portfolio management services[131]. - The EU Digital Operational Resilience Requirements (DORA) became effective on January 17, 2025, with ongoing developments and compliance challenges noted[136]. - The U.K. Government plans to legislate T+1 as the standard settlement cycle starting on October 11, 2027, aligning with the EU's transition[135]. - Federated Hermes is actively monitoring and assessing the impact of regulatory developments on its business and financial condition, including interest rate fluctuations and market instability[140]. - The complexity and number of regulatory requirements are increasing compliance costs and may materially impact Federated Hermes' financial condition[142]. - As of March 31, 2025, Federated Hermes is unable to fully assess the impact of ongoing regulatory developments on its financial condition due to the evolving regulatory environment[144]. Operational Insights - Significant operating expenses include Compensation and Related expenses and Distribution expenses, which are influenced by overall operational results and sales performance[96]. - The company’s Right-of-Use Assets and Property and Equipment, net totaled $123.85 million as of March 31, 2025, down from $130.28 million at the end of 2024[87]. - Liquid assets totaled $578.4 million at March 31, 2025, down from $694.1 million at December 31, 2024[170]. - Operating expenses increased by 8% to $150 million, primarily due to investments in technology and marketing[209]. - The interest coverage ratio was 44 to 1, significantly above the required minimum of 4 to 1, and the leverage ratio was 0.65 to 1, well below the maximum of 3 to 1[177]. - Management expects to invest approximately $280 million over the next three years for technology-driven initiatives[179]. Strategic Initiatives - The company entered into a share purchase agreement to acquire a 60% equity interest in Rivington Energy Management for £23.7 million ($30.6 million), aimed at expanding its growth in non-U.S. markets[90][89]. - The acquisition includes a £12.9 million ($16.7 million) capital contribution for Rivington's growth and debt repayment, with potential contingent payments of up to £10.7 million ($13.8 million) based on revenue growth[90]. - Federated Hermes is investing in new technology, with a budget allocation of $30 million for digital platform enhancements in 2025[209]. - The company plans to expand its market presence in Asia, targeting a 20% increase in market share by 2026[209]. - A strategic acquisition of a smaller asset management firm is in progress, expected to close by Q3 2025, which will add approximately $10 billion in AUM[209]. - The company is focusing on sustainable investment products, aiming to launch three new ESG-focused funds by the end of 2025[209].

Financial Data and Key Metrics Changes - The company ended Q1 2025 with record assets under management (AUM) of $840 billion, driven by record money market assets of $637 billion [6][20] - Total revenue for Q1 decreased slightly from the prior quarter, with higher revenue from money market assets offset by lower revenue from equity assets [25] - Q1 operating expenses decreased by $22.5 million from the prior quarter, mainly due to lower FX-related expenses [26] Business Line Data and Key Metrics Changes - Equity assets increased by $1.5 billion from year-end, primarily due to net sales of $1.4 billion [6] - Fixed income assets increased by about $1.4 billion in Q1, mainly due to higher market valuations, partially offset by net redemptions [11] - Alternative private markets saw an increase of $562 million in Q1, driven by FX rates and net sales of about $61 million [12] Market Data and Key Metrics Changes - The company’s money market mutual fund market share was approximately 7.10% at the end of Q1, down slightly from 7.22% at the end of 2024 [23] - Managed assets were approximately $828 billion, including $629 billion in money markets, $78.5 billion in equities, and $98 billion in fixed income [24] Company Strategy and Development Direction - The company is focused on developing its private markets business for growth, including the acquisition of a majority interest in a U.K. renewable energy company [17] - The company plans to continue adding active ETFs, with a goal of launching a handful each year [91] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter is typically the worst quarter of the year for the industry, but this year saw positive flows [37] - There are expectations for higher interest rates for a longer period, which is anticipated to continue driving positive flows into money market products [52] Other Important Information - The company declared a $0.34 per share dividend, an increase of nearly 10% from the prior quarter [29] - The company purchased over 3 million shares for about $120 million during Q1 [30] Q&A Session Summary Question: Comments on money market market-share - Management clarified that the company had $3 billion of increased money market fund AUM, indicating positive inflows despite competitive pressures [32][36] Question: Update on fixed-income outflows - Management attributed elevated fixed-income outflows primarily to the Total Return Bond Fund and High Yield, with performance improving [42][44] Question: Flows since tax date - Management reported an increase of about $5 billion in assets since the tax date, indicating positive flows from both retail and institutional sides [55] Question: Capacity issues with MDT - Management confirmed there are no capacity issues with MDT despite significant organic growth [96]

Federated Hermes, Inc.’s (FHI) first-quarter 2025 adjusted earnings per share of $1.10 topped the Zacks Consensus Estimate of 91 cents. The bottom line grew 23.6% from the year-ago quarter.Increased net administrative service fees and net investment advisory fees are major driving factors. The company’s total managed assets touched a record level. A rise in revenues and a decline in expenses were added advantages.Net income (GAAP basis) of $101.1 million rose 35% from the year-ago quarter.FHI’s Revenues & O ...

Core Viewpoint - Federated Hermes reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and showing an increase from $0.89 per share a year ago [1][2] Financial Performance - The company achieved revenues of $423.54 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.88%, and up from $396.37 million year-over-year [3] - The earnings surprise for the quarter was 20.88%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] Market Position and Outlook - Federated Hermes shares have declined approximately 8% since the beginning of the year, slightly better than the S&P 500's decline of 8.6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $422.77 million, and for the current fiscal year, it is $3.81 on revenues of $1.7 billion [8] Industry Context - The Financial - Investment Management industry, to which Federated Hermes belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [9] - Another company in the same industry, GCM Grosvenor Inc., is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year increase of 42.9% [10]

Total assets under management reach a record $839.8 billion Money market assets reach a record $637.1 billion Q1 2025 earnings per diluted share of $1.25 Quarterly dividend increased by 9.7% to $0.34 per sharePITTSBURGH, April 24, 2025 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.25 for Q1 2025, compared to $0.89 for the same quarter last year, on net income of $101.1 million for Q1 2025, compared to $75.0 mil ...

Annual Shareholder Meeting will be by teleconference Thursday, April 24, 2025 PITTSBURGH, April 7, 2025 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, will report financial and operating results for the quarter ended March 31, 2025 after the market closes on Thursday, April 24, 2025. A conference call for investors and analysts will be held at 9 a.m. Eastern on Friday, April 25, 2025. President and Chief Executive Officer J. Christopher Donahue and Chief Financial ...

Core Insights - Federated Hermes MDT funds received recognition at the 2025 LSEG Lipper Fund Awards for strong risk-adjusted performance across multiple categories [1][9] - The investment team managing these funds has over 80 years of combined experience and oversees $14.2 billion in assets [2] - The funds employ a disciplined, bottom-up, quantitative investment approach, utilizing sophisticated modeling techniques [2] Fund Performance Highlights - The Federated Hermes MDT Mid Cap Growth Fund outperformed 334 share classes and 97 portfolios over three years, and 305 share classes and 88 portfolios over five years [3][11] - The Federated Hermes MDT All Cap Core Fund outperformed 476 share classes and 179 portfolios over five years [4][11] - The Federated Hermes Conservative Municipal Microshort Fund outperformed 114 share classes and 37 portfolios over three years [5][12] - The Federated Hermes Corporate Bond Strategy Portfolio outperformed 126 share classes and 46 portfolios over ten years [6][12] Company Overview - Federated Hermes, Inc. is a global leader in active investment management with $829.6 billion in assets under management as of December 31, 2024 [7] - The company provides a wide range of investment solutions, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies [7] - Federated Hermes has a workforce of over 2,000 employees across various global offices [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 1001 Liberty Avenue For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-14818 FEDERATED HERMES, INC. (Exact name of registrant as specified in its charter) Pennsylvania 25-1111467 (State or other ...

Company Overview - Federated Hermes, Inc. is a global leader in active investment management with $829.6 billion in assets under management as of December 31, 2024 [3] - The company provides a wide range of investment solutions including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies to over 10,000 institutions and intermediaries worldwide [3] - Federated Hermes serves a diverse client base that includes corporations, government entities, insurance companies, foundations and endowments, banks, and broker/dealers [3] - The company is headquartered in Pittsburgh and employs more than 2,000 people across offices in London, New York, Boston, and other locations globally [3] Upcoming Events - President and CEO J. Christopher Donahue is scheduled to present at the 2025 RBC Capital Markets Global Financial Institutions Conference on March 4, 2025, from approximately 10:40 to 11:10 a.m. ET [1] - Investors and interested parties can access a live webcast of the presentation through the company's website, with registration required at least 15 minutes prior to the event [2]

Core Viewpoint - Federated Hermes has announced significant organizational changes within its fixed-income group, including the appointment of Kathryn Glass as co-head of the Domestic High Yield Group and the upcoming retirement of Jeff Kozemchak, which will lead to several portfolio manager changes [1][4]. Group 1: Leadership Changes - Kathryn Glass, with 27 years of investment experience, has been appointed as co-head of the Domestic High Yield Group, working alongside Mark Durbiano, who has been with the firm for 42 years [2][1]. - Glass has been a key member of the high-yield fixed-income team for 26 years and will take on more administrative and investment oversight responsibilities [2][1]. Group 2: Team Experience and Management - The high-yield fixed-income team at Federated Hermes consists of 16 members, averaging 20 years of industry experience and managing approximately $13 billion in US high-yield fixed income strategies [3]. - The firm manages a total of $98 billion in fixed-income assets as of December 31, 2024 [3]. Group 3: Retirement and Succession - Jeff Kozemchak, a senior portfolio manager for municipal liquidity and short-intermediate strategies, will retire after 38 years with Federated Hermes [4]. - In anticipation of Kozemchak's retirement, several portfolio manager changes have been announced, including the addition of Ann Ferentino and Michael Sirianni Jr. to various funds [7][5]. Group 4: Municipal Fixed-Income Management - Federated Hermes has a strong municipal portfolio management team with 28 investment professionals managing approximately $23 billion in municipal strategies as of December 31, 2024 [5]. - The municipal fixed-income team averages 23 years of industry experience, contributing to the firm's reputation for strong, risk-adjusted results in municipal strategies [4][5].